Radicle’s New Record Liquidity Bootstrapping Pool Sale Shows That LBPs Are Here To Stay
How Radicle made a splash by leveraging Balancer’s LBPs to ensure optimal initial token distribution and beat the previous record
Intro
An increasing number of projects are choosing Balancer’s Liquidity Bootstrapping Pools (LBP) as a means to distribute initial tokens fairly.
LBPs are preferred because they offer numerous advantages — a smooth price discovery process that discourages front-running, an even playing field of participation which results in an even token distribution, and a capital-efficient manner of bootstrapping liquidity.
Allowing for the pool’s token pair weighting (e.g 92.5%/7.5% USDC/TKN) to be skewed means projects can bootstrap liquidity with little investment; weighting changes throughout the sale gives average buyers the ability to participate in the project at a fair price. This is in contrast to traditional 50/50 initial DEX offerings (IDO), where large buyers (or bots) can bid up the price at the start of the sale at the expense of everybody else who comes later.
The community is noticing the benefits of using an LBP, as Balancer has been recording higher records of volumes in these…
